UPDATE: Wedbush Initiates Tesla Motors at Neutral as Gen III Success Depends on Si-Alloy Cell

In a report published on Thursday, Wedbush analyst Craig Irwin initiated coverage on Tesla Motors (NASDAQ: TSLA) with a Neutral rating and a $110 price target.

In the report, Wedbush stated, "We see strong positives in a credible path to longer-term battery cost reduction and the Gen-III vehicle target costs, counterbalanced by remaining uncertainty in intermediate and longer-term sales volumes. We would want to have higher confidence in the rate of market penetration beyond Tesla's well identified early adopters before taking a more constructive view on the stock."

Tesla Motors closed on Thursday at $109.25.